Kohl's Shares Drop on Weak Same-Store Sales

Department store operator Kohl's Corp reported quarterly same-store sales that missed analysts' expectation, hurt by colder-than-usual weather in February.

The company's shares fell 8.5 percent to $68.15 in premarket trading on Thursday.

Kohl's same-store sales rose 1.4 percent in the first quarter ended May 2, but widely missed analysts' expectation for a 2.6 percent rise, according to research firm Consensus Metrix.

Analysts had expected Kohl's same-store sales in the quarter to be boosted by the nationwide roll out of its loyalty program, upgraded beauty departments at its stores and more online and TV advertising.

"Sales were modestly below our original expectations for the quarter, but accelerated in the March/April combined period after a weak February," Chief Executive Kevin Mansell said in a statement.

Rival Macy's Inc said on Wednesday that first-quarter profit and sales were hurt by fewer customer visits due to unusually cold weather in February.

Kohl's net income rose to $127 million, or 63 cents per share, from $125 million, or 60 cents per share, a year earlier.

Net sales rose 1.3 percent to $4.12 billion.

Analysts on average had expected earnings of 55 cents per share on revenue of $4.19 billion, according to Thomson Reuters I/B/E/S.

Up to Wednesday's close, Kohl's shares had risen 22.1 percent this year, trumping the S&P 500 Index's 1.92 percent rise. (Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Savio D'Souza and Sriraj Kalluvila)